Penalty Cannot Survive on Estimated Bogus Purchase Addition: ITAT Deletes 271(1)(c)

Etesh P Jain Vs ITO (ITAT Mumbai) AO treated alleged bogus purchases of ₹68,08,698 as non-genuine & added 100%. CIT(A) restricted disallowance to 12.5% based on available evidence, & in further appeal Tribunal restricted it to 10% (₹6,80,869) holding that purchases were genuine but unverifiable. AO thereafter levied penalty u/s 271(1)(c) @100% of tax. Before Tribunal, Assessee argued that addition was purely on estimated basis & therefore no concealment could be alleged. Tribunal referred to Bombay HC judgment in PCIT v. Colo Colours Pvt Ltd (178 taxmann.com 458) & Mumbai I...